The housing channel of intergenerational wealth persistence

We use Norwegian tax data and a life-cycle model with housing to study how wealth transmits across generations through the housing market. After controlling for a rich set of attributes, households with richer parents are nearly 15% more likely to be homeowners at age 30. Moreover, when entering, th...

Ausführliche Beschreibung

Gespeichert in:
Bibliographische Detailangaben
Veröffentlicht in:Working paper 2023
Hauptverfasser: Wold, Ella Getz, Aastveit, Knut Are, Brandsaas, Eirik Eylands, Juelsrud, Ragnar Enger, Natvik, Gisle James
Format: Artikel
Sprache:eng
Schlagworte:
Online-Zugang:Volltext bestellen
Tags: Tag hinzufügen
Keine Tags, Fügen Sie den ersten Tag hinzu!
container_end_page
container_issue
container_start_page
container_title Working paper
container_volume
creator Wold, Ella Getz
Aastveit, Knut Are
Brandsaas, Eirik Eylands
Juelsrud, Ragnar Enger
Natvik, Gisle James
description We use Norwegian tax data and a life-cycle model with housing to study how wealth transmits across generations through the housing market. After controlling for a rich set of attributes, households with richer parents are nearly 15% more likely to be homeowners at age 30. Moreover, when entering, they have higher leverage and buy homes worth 15% more. Estimates using international stock market returns as a shiftshare instrument support a causal interpretation. We further document that housing outcomes when young are important determinants of midlife wealth. This holds also when using plausibly exogenous variation in homeownership caused by the timing of intra-family deaths. As a result, housing gaps caused purely by parental wealth explain 12% of intergenerational wealth persistence, making housing equally important as the combined impact of a wide range of household characteristics including income and education. We explore new mechanisms for parental support, such as intra-family housing transactions below market value. Through the lens of our model, house price expectations stand out as a key driver of the magnitude of the housing channel of intergenerational wealth persistence.
format Article
fullrecord <record><control><sourceid>cristin_3HK</sourceid><recordid>TN_cdi_cristin_nora_11250_3166797</recordid><sourceformat>XML</sourceformat><sourcesystem>PC</sourcesystem><sourcerecordid>11250_3166797</sourcerecordid><originalsourceid>FETCH-cristin_nora_11250_31667973</originalsourceid><addsrcrecordid>eNrjZLAOyUhVyMgvLc7MS1dIzkjMy0vNUchPU8jMK0ktSk_NSy1KLMnMz0vMUShPTcwpyVAoSC0qziwuSc1LTuVhYE1LzClO5YXS3AyKbq4hzh66yUVAFZl58Xn5RYnxhoZGpgbxxoZmZuaW5sbEqAEA2sYvrQ</addsrcrecordid><sourcetype>Open Access Repository</sourcetype><iscdi>true</iscdi><recordtype>article</recordtype></control><display><type>article</type><title>The housing channel of intergenerational wealth persistence</title><source>NORA - Norwegian Open Research Archives</source><creator>Wold, Ella Getz ; Aastveit, Knut Are ; Brandsaas, Eirik Eylands ; Juelsrud, Ragnar Enger ; Natvik, Gisle James</creator><creatorcontrib>Wold, Ella Getz ; Aastveit, Knut Are ; Brandsaas, Eirik Eylands ; Juelsrud, Ragnar Enger ; Natvik, Gisle James</creatorcontrib><description>We use Norwegian tax data and a life-cycle model with housing to study how wealth transmits across generations through the housing market. After controlling for a rich set of attributes, households with richer parents are nearly 15% more likely to be homeowners at age 30. Moreover, when entering, they have higher leverage and buy homes worth 15% more. Estimates using international stock market returns as a shiftshare instrument support a causal interpretation. We further document that housing outcomes when young are important determinants of midlife wealth. This holds also when using plausibly exogenous variation in homeownership caused by the timing of intra-family deaths. As a result, housing gaps caused purely by parental wealth explain 12% of intergenerational wealth persistence, making housing equally important as the combined impact of a wide range of household characteristics including income and education. We explore new mechanisms for parental support, such as intra-family housing transactions below market value. Through the lens of our model, house price expectations stand out as a key driver of the magnitude of the housing channel of intergenerational wealth persistence.</description><language>eng</language><publisher>Norges Bank</publisher><subject>housing market ; intergenerational wealth ; wealth inequality</subject><ispartof>Working paper, 2023</ispartof><rights>info:eu-repo/semantics/openAccess</rights><oa>free_for_read</oa><woscitedreferencessubscribed>false</woscitedreferencessubscribed></display><links><openurl>$$Topenurl_article</openurl><openurlfulltext>$$Topenurlfull_article</openurlfulltext><thumbnail>$$Tsyndetics_thumb_exl</thumbnail><link.rule.ids>230,780,885,26567</link.rule.ids><linktorsrc>$$Uhttp://hdl.handle.net/11250/3166797$$EView_record_in_NORA$$FView_record_in_$$GNORA$$Hfree_for_read</linktorsrc></links><search><creatorcontrib>Wold, Ella Getz</creatorcontrib><creatorcontrib>Aastveit, Knut Are</creatorcontrib><creatorcontrib>Brandsaas, Eirik Eylands</creatorcontrib><creatorcontrib>Juelsrud, Ragnar Enger</creatorcontrib><creatorcontrib>Natvik, Gisle James</creatorcontrib><title>The housing channel of intergenerational wealth persistence</title><title>Working paper</title><description>We use Norwegian tax data and a life-cycle model with housing to study how wealth transmits across generations through the housing market. After controlling for a rich set of attributes, households with richer parents are nearly 15% more likely to be homeowners at age 30. Moreover, when entering, they have higher leverage and buy homes worth 15% more. Estimates using international stock market returns as a shiftshare instrument support a causal interpretation. We further document that housing outcomes when young are important determinants of midlife wealth. This holds also when using plausibly exogenous variation in homeownership caused by the timing of intra-family deaths. As a result, housing gaps caused purely by parental wealth explain 12% of intergenerational wealth persistence, making housing equally important as the combined impact of a wide range of household characteristics including income and education. We explore new mechanisms for parental support, such as intra-family housing transactions below market value. Through the lens of our model, house price expectations stand out as a key driver of the magnitude of the housing channel of intergenerational wealth persistence.</description><subject>housing market</subject><subject>intergenerational wealth</subject><subject>wealth inequality</subject><fulltext>true</fulltext><rsrctype>article</rsrctype><creationdate>2023</creationdate><recordtype>article</recordtype><sourceid>3HK</sourceid><recordid>eNrjZLAOyUhVyMgvLc7MS1dIzkjMy0vNUchPU8jMK0ktSk_NSy1KLMnMz0vMUShPTcwpyVAoSC0qziwuSc1LTuVhYE1LzClO5YXS3AyKbq4hzh66yUVAFZl58Xn5RYnxhoZGpgbxxoZmZuaW5sbEqAEA2sYvrQ</recordid><startdate>2023</startdate><enddate>2023</enddate><creator>Wold, Ella Getz</creator><creator>Aastveit, Knut Are</creator><creator>Brandsaas, Eirik Eylands</creator><creator>Juelsrud, Ragnar Enger</creator><creator>Natvik, Gisle James</creator><general>Norges Bank</general><scope>3HK</scope></search><sort><creationdate>2023</creationdate><title>The housing channel of intergenerational wealth persistence</title><author>Wold, Ella Getz ; Aastveit, Knut Are ; Brandsaas, Eirik Eylands ; Juelsrud, Ragnar Enger ; Natvik, Gisle James</author></sort><facets><frbrtype>5</frbrtype><frbrgroupid>cdi_FETCH-cristin_nora_11250_31667973</frbrgroupid><rsrctype>articles</rsrctype><prefilter>articles</prefilter><language>eng</language><creationdate>2023</creationdate><topic>housing market</topic><topic>intergenerational wealth</topic><topic>wealth inequality</topic><toplevel>online_resources</toplevel><creatorcontrib>Wold, Ella Getz</creatorcontrib><creatorcontrib>Aastveit, Knut Are</creatorcontrib><creatorcontrib>Brandsaas, Eirik Eylands</creatorcontrib><creatorcontrib>Juelsrud, Ragnar Enger</creatorcontrib><creatorcontrib>Natvik, Gisle James</creatorcontrib><collection>NORA - Norwegian Open Research Archives</collection></facets><delivery><delcategory>Remote Search Resource</delcategory><fulltext>fulltext_linktorsrc</fulltext></delivery><addata><au>Wold, Ella Getz</au><au>Aastveit, Knut Are</au><au>Brandsaas, Eirik Eylands</au><au>Juelsrud, Ragnar Enger</au><au>Natvik, Gisle James</au><format>book</format><genre>document</genre><ristype>GEN</ristype><atitle>The housing channel of intergenerational wealth persistence</atitle><jtitle>Working paper</jtitle><date>2023</date><risdate>2023</risdate><abstract>We use Norwegian tax data and a life-cycle model with housing to study how wealth transmits across generations through the housing market. After controlling for a rich set of attributes, households with richer parents are nearly 15% more likely to be homeowners at age 30. Moreover, when entering, they have higher leverage and buy homes worth 15% more. Estimates using international stock market returns as a shiftshare instrument support a causal interpretation. We further document that housing outcomes when young are important determinants of midlife wealth. This holds also when using plausibly exogenous variation in homeownership caused by the timing of intra-family deaths. As a result, housing gaps caused purely by parental wealth explain 12% of intergenerational wealth persistence, making housing equally important as the combined impact of a wide range of household characteristics including income and education. We explore new mechanisms for parental support, such as intra-family housing transactions below market value. Through the lens of our model, house price expectations stand out as a key driver of the magnitude of the housing channel of intergenerational wealth persistence.</abstract><pub>Norges Bank</pub><oa>free_for_read</oa></addata></record>
fulltext fulltext_linktorsrc
identifier
ispartof Working paper, 2023
issn
language eng
recordid cdi_cristin_nora_11250_3166797
source NORA - Norwegian Open Research Archives
subjects housing market
intergenerational wealth
wealth inequality
title The housing channel of intergenerational wealth persistence
url https://sfx.bib-bvb.de/sfx_tum?ctx_ver=Z39.88-2004&ctx_enc=info:ofi/enc:UTF-8&ctx_tim=2025-01-07T00%3A33%3A55IST&url_ver=Z39.88-2004&url_ctx_fmt=infofi/fmt:kev:mtx:ctx&rfr_id=info:sid/primo.exlibrisgroup.com:primo3-Article-cristin_3HK&rft_val_fmt=info:ofi/fmt:kev:mtx:book&rft.genre=document&rft.atitle=The%20housing%20channel%20of%20intergenerational%20wealth%20persistence&rft.jtitle=Working%20paper&rft.au=Wold,%20Ella%20Getz&rft.date=2023&rft_id=info:doi/&rft_dat=%3Ccristin_3HK%3E11250_3166797%3C/cristin_3HK%3E%3Curl%3E%3C/url%3E&disable_directlink=true&sfx.directlink=off&sfx.report_link=0&rft_id=info:oai/&rft_id=info:pmid/&rfr_iscdi=true